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Is Solar Worth It in Delaware in 2026?

Complete analysis of solar costs, incentives, net metering, and payback for Delaware homeowners — without the federal ITC.

Cost Per Watt

$3.20

installed

Electricity Rate

$0.157

per kWh

Payback (No ITC)

16.1 yr

current reality

Payback (With 30% ITC)

11.3 yr

hypothetical

25-Year ROI

55%

return on investment

Incentive Breakdown — Delaware

Available incentives for a typical 7kW residential solar system in Delaware

Federal ITC (25D)

Expired

The federal solar Investment Tax Credit expired on January 1, 2026. No federal credit available for new installations.

State Tax Credit

None

Delaware's green energy tax credit has expired.

SREC Market

~$245/yr

Delaware has an active SREC market with values approximately $35/SREC.

Property Tax Exemption

Solar system value excluded from property tax assessment

Sales Tax Exemption

No statewide sales tax exemption for solar

Key Incentives: Property tax exemption for solar; SREC market value ~$245/year.

Solar Math — With vs Without Federal ITC

Cost breakdown for a typical 7kW residential system in Delaware

2026 Reality (No Federal ITC)

System Size
7 kW
Cost per Watt
$3.20/W
Gross Cost
$22,400
Federal ITC
$0
Net Cost
$22,400
Annual Savings
$1,390/yr
Payback Period
16.1 years

Hypothetical (With 30% ITC)

System Size
7 kW
Cost per Watt
$3.20/W
Gross Cost
$22,400
Federal ITC (30%)
-$6,720
Net Cost
$15,680
Annual Savings
$1,390/yr
Payback Period
11.3 years

Impact: Without the federal ITC, Delaware homeowners face a 4.8-year longer payback period — paying $6,720 more out of pocket.

Net Metering Policy — Delaware

How Delaware compensates your excess solar production

NEM 1.0 Full Retail Net Metering

Full retail rate net metering — you earn the same rate you pay for electricity. Best case for solar savings.

Delaware mandates net metering at full retail rate for systems up to 25 kW under PSC rules.

Cost Per Watt Benchmark — Delaware

Delaware Average

$3.20/W

National Average

$3.05/W

Typical 7kW System

$22,400

$2.00/W $3.50/W $5.00/W

Delaware's average installed cost is above the national average of $3.05/W

Breakeven Timeline

Without the federal ITC, a typical 7kW system in Delaware breaks even in 16.1 years. With the former 30% ITC, payback would drop to 11.3 years.

Without Federal ITC

16.1

years to break even

With Former 30% ITC

11.3

years to break even

Production Details

Peak Sun Hours4.5 hrs/day
Production1265 kWh/kW/yr
Annual Production$8,853 kWh
Annual Savings$1,390

Ready to Go Solar in Delaware?

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